The German Trade Union Confederation's demand for a rent freeze, justified by an alleged 50 percent increase in asking rents in major Baden-Württemberg cities over the past ten years, has met with criticism from real estate industry representatives. Joachim Rudolf, Chairman of Haus & Grund Stuttgart, and Managing Director Ulrich Wecker commented on this. They view the DGB's demand as an inadequate understanding of the housing market and how a market economy functions.
Rudolf and Wecker pointed out that neither a rent explosion is occurring, nor would a rent freeze contribute to the creation of housing. They described the DGB's position as 'cheap populism'. Furthermore, they suggested that the DGB should pursue its core tasks, namely advocating for adequate wages. These wages could then, in turn, form the basis for market-appropriate rents that allow for a reasonable return for landlords.
The reality of Stuttgart's housing market shows a stagnation of rents. The rent burden on households is below the criteria of the rent cap. Rudolf emphasised that many private landlords were considering ending their involvement. A rent freeze would jeopardise property rights and bring investments in housing to a complete halt, which must be understood as a 'death sentence for the housing market'.
The arguments against the DGB's demands are based on several points. Firstly, asking rents, as presented on online portals, do not reflect the entire housing market but only a small portion of actual tenancy agreements. Secondly, rent development often follows wage development. In Stuttgart, the asking rents cited by the DGB rose by 37 percent between 2015 and 2025, while wages increased by 31 percent. Thirdly, according to the rent index, actual rents show a more differentiated picture: they rose from 8.44 EUR per square metre in 2015 to 11.15 EUR per square metre, which corresponds to an increase of 32 percent.
Fourthly, the City of Stuttgart's 2025 Housing Market Report confirmed that a rent burden of 30 percent of the household net income is considered appropriate. The average rent burden ratio in Stuttgart households is 29 percent. Fifthly, the population and household numbers in Stuttgart have stagnated for years, while new homes have simultaneously been added. Stuttgart currently has 604,000 inhabitants. Sixthly, the current rent index in Stuttgart recorded a nominal increase of merely one percent over two years, which, in real terms, considering inflation and wage developments, amounts to a decrease. The estate agents' association IVD registered zero growth in rental prices for the first half of 2025.
Instruments such as the rent cap hinder investments in housing and make renting in Stuttgart increasingly difficult. These measures do not create the hoped-for affordable housing but reduce the housing supply, as investments and renting become less financially worthwhile. Rent controls or a rent freeze also do not help to provide housing for those in need. On the contrary, such regulations can lead to well-off tenants occupying large flats at low rents, while solvent prospective tenants continue to be preferred in tenant selection.
